How Investors Think About Ideas

A good overview from YC’s Kevin Hale on how to break down startup ideas:

The “solution looking for a problem” trap is all too easy to fall into, and to justify your way out of even if you fall prey to it. I love the approach here of starting with the end goal ($100M ARR) and backing into what the market size and price point would need to be to hit that target. So simple, but most of us don’t approach the thought process from that end.